ELECTRICITY INDONESIA
The 35GW target to increase the electrification ratio to 97.35% in 2019 has resulted in a slew of power projects across the archipelago.
Geothermal is one of the main platforms of Medco Power. It not only offers significant resources potential, but the government has also outlined its intention to increase the role of geothermal in the future power plant fuel mix. In 2018 we are focusing on the completion of Sarulla Unit 3 (110MW) and Pusaka (8.8MW) projects. Gas to power is also our key platform. With the introduction of Minister Regulation No.45/2017, there are opportunities for development efficient gas to power projects, for example through wellhead gas to power concept. We have opportunities to team up with our upstream affiliates to realize this concept. Some of the potential areas we are currently reviewing are in Aceh, Kalimantan, South Sumatra, and Sulawesi. Leveraging our unique position with upstream affiliates, we seek to develop 1,000-1,800MW gas-fired power plant capacity potentials.
Marubeni started an EPC business in power over 50 years ago; however, since the end of the 1990s we have done independent power producer (IPP) projects and have become the owner of private-based power projects. Currently, we have more than 40 power stations all over the world, and that has become our major profit sources. We have many opportunities both in IPP and EPC business in Indonesia as the country has proceeded with ambitious 35GW program projects, including Tambak Lorok Project, which we were awarded. Indonesia has the largest potential market for power projects in the world and is an extremely important market for us. Coal fire holds the greatest business opportunities as Indonesia still has a great need for a substantial amount of electricity, and coal fire will still play a key role in supplying and satisfying the huge amount of potential and demand.
One of our CSR projects is installing solar lighting in remote villages, which transforms the lives of these villagers. They can study, play, and have social gatherings at night without having to use a kerosene lamp that is 90% less bright and more dangerous. Another of our CSR initiatives is visiting schools every quarter to talk to children about energy efficiency and how they can contribute to Indonesia and the world with their environmental practices. We also partner with UNICEF to help children go back to school and have committed at least IDR2 billion (USD140,000) for 2018 to help UNICEF with these programs. We also opened a Lighting Application Center where our customers and partners can see what we are talking about when we say that lighting goes beyond just illumination and can help cities.
In order to provide better electricity supply, we have outlined three approaches. The first is grid expansion, which can be done when the community load is near the electricity system. Then, the transmission network interconnection is developed to acquire a better management electricity load. The second approach is the individual stand-alone, the variant for areas where the community is spread out and far from the PLN system. In order to meet the electricity needs, the government provided solar home systems for each house whose financing is on state budget. The third approach is the micro-grid or distributed generation. This is developed when communities are far from PLN systems, but in one area. Micro grid-off grid is the most efficient and reliable to be developed separately. To increase the electrification ratio, we have introduced small-scale power supply operations.
ELECTRICITY INDONESIA
TABLE OF CONTENTS
Interview
Dr. Bambang Brodjonegoro, Minister , National Development Planning (Bappenas)
TBY talks to Dr. Bambang Brodjonegoro, Minister of National Development Planning (Bappenas), on acquiring financing for infrastructure projects and boosting private sector involvement in the country.
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Thomas Trikasih Lembong, Chairman, Investment Coordinating Board (BKPM)
Thomas Trikasih Lembong is the Chairman of BKPM. He was a former Minister of Trade of Indonesia from 2015-2016. Prior his appointment in the cabinet, he had a long professional career. He was a Co-Founder, Chief Executive Officer, Managing Partner, and Partner at Quvat Management Pte Ltd and also served as President Commissioner at PT Graha Layar Prima Tbk (BlitzMegaplex) since 2012. He was previously employed with Principia Management Group and the Equity Division of Morgan Stanley (Singapore) Pte. Ltd, among others. He received a bachelor's degree in architecture and urban design from Harvard. He also was elected Young Global Leader by the World Economic Forum in 2008.
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Tevita Lavemaau, Former Minister of Finance and National Planning , Tonga
TBY talks to Tevita Lavemaau, Former Minister of Finance and National Planning of Tonga, on the effect of climate change on the country, its work to combat inequality, and further areas of cooperation with Indonesia.
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Dr. Tito Sulistio, President Director, Indonesia Stock Exchange (IDX)
TBY talks to Dr. Tito Sulistio, President Director of Indonesia Stock Exchange (IDX), on the strong performance of the capital markets, its goals to increase the number of listed companies, and the growing importance of digital innovation.
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Amien Sunaryadi, Chairman, Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas)
TBY talks to Amien Sunaryadi, Chairman of Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas), on preparing new block offerings, attracting greater investment into the sector, and pushing for exploration.
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Ronald Walla, President Director, PT Wismilak Inti Makmur
TBY talks to Ronald Walla, President Director of PT Wismilak Inti Makmur, on offering the public a more relevant value proposition, strengthening the ideology of Indonesia's founding fathers, and forging bigger profit margins.
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Teddy Tjokrosaputro, President Director, PT Rimo International Lestari (RIMO)
TBY talks to Teddy Tjokrosaputro, President Director of PT Rimo International Lestari (RIMO), on stepping back forcefully from the brink, using affordable housing as a springboard, and laying the groundwork for the country's future.
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In the House
As strong economic growth, an optimistic political outlook, and a partially successful tax amnesty to repatriate offshore wealth continue to drive up housing prices in Indonesia's major urban centers, demand for new housing and shares in developers plummeted in 2017.
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